The document discusses the practice of 'sue and settle,' where federal agencies enter into private settlement agreements with special interest groups that dictate regulatory rules outside the typical rulemaking process. This practice has led to significant economic burdens and a lack of transparency in public policy, as seen in cases like the EPA's recent settlements resulting in over 100 new regulations. Critics argue that it creates confidential agreements that obstruct public participation and understanding of regulatory decisions.

1. Sue and Settle:
The Truth About
Regulating Behind Closed Doors

2. When a federal agency agrees with
a special interest group to a legally-
binding settlement that creates rules
and priorities outside of the normal
rulemaking process.
What is “Sue and Settle”?

3. A special interest group sues a federal
agency to issue rules by a specific deadline.
The special interest group and federal agency
enter into a private settlement agreement.
The settlement is lodged in court;
once finished, it becomes legally
binding for the agency.
How Sue and Settle Works

4. Between 2009 and 2012, EPA chose
not to defend itself in over 60 lawsuits
from special interest advocacy groups.
These cases resulted in settlement
agreements and EPA publishing more
than 100 new regulations.
How Common is Sue and Settle?

5. Significantly Influences Affected
Federal Agencies:
According to the director of the
U.S. Fish & Wildlife Service, in
FY 2011 the agency spent more
than 75% of its species listing budget
to comply with settlement agreements
and court-ordered requirements.
What’s the Problem
with Sue and Settle?

6. Causes Tremendous Economic Burdens:
Compliance with rules and other
requirements of settlement agreements
can cost tens to even hundreds of
billions of dollars each year.
What’s the Problem
with Sue and Settle?

7. Negative Implications for Public Policy:
Because private settlement agreements
are made confidentially, the public is
kept in the dark, bypassing the normal
rulemaking procedures necessary
to create sound public policy.
What’s the Problem
with Sue and Settle?

8. @Regulations
www.sueandsettle.com
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